Electronics production in the country’s Defence sector touched ₹13,800 crore during 2013-14 and is expected to grow over 15 per cent this year, said Electronic Industries Association of India (ELCINA) President Subhash Goyal.
The production of strategic electronics stood at ₹12,000 crore in 2012-13 and has been growing steadily from ₹5,700 crore in 2007-08 to ₹9,000 crore during 2010-11.
ELCINA has been holding the strategic electronics summit (SES) since 2010. This year it is being held in Bangalore on July 30 and 31.
This year’s SES is likely to witness a large participation of Defence PSUs, including HAL, Bharat Electronics Ltd, Electronics Corporation of India Ltd and Bharat Dynamics Ltd.
Challenges faced Top scientists and officials from DRDO Labs and some of the best private sector companies are coming together to share opportunities and take on challenges that need to be overcome amid expectations of a liberalised policy regime under the new Government. According to Goyal, the SES will highlight the new Defence production and offset policies and encourage new investments to develop strategic strengths. He said “the Government has rightly allowed 49 per cent FDI in Defence; this will result in greater access to new technologies and pave the way for global majors to invest in India.”
Domestic manufacturing ELCINA Secretary-General Rajoo Goel said the summit has successfully created awareness about opportunities in this sector.
We involve small and medium enterprises, which face entry barriers such as high investments in R&D and long gestation periods before user acceptance. SMEs lack the resources to break such barriers and need Government support to become strong players in the sector.
With a new Government at the Centre, the expectations of the local industry should be met, which will result in reversing the trend of 70 per cent imports and 30 per cent indigenous production. The Government has stated clearly its intent of ensuring growth of indigenous Defence manufacturing in its policy roadmap.